Selling a Business as an Alternative
In economically disadvantaged regions of Germany, unplanned business succession is particularly damaging, as a company is often one of the few economic pillars there. If it closes due to a lack of a successor, jobs are lost and suppliers lose orders.
According to Ingo Claus, a Münsterland-based specialist in business succession, around 150,000 companies will be affected by generational transition in the coming years. Company owners are retiring, but they’re worried about their life’s work. However, in the absence of a successor within the family, they have only one option: they must sell their business. That’s not so easy in times of economic uncertainty.
Radical changes are on the horizon
In Germany, the shortage of skilled workers could cause an economic downturn, and Europe is politically unsettled by Brexit. Globally, rising protectionism is having a negative impact. Selling a business, in turn, is often very difficult for owners. According to the DIHK study, 43% of them are not prepared for this in time. Most of these cases involve business owners who have worked for their own companies their entire lives and find it emotionally difficult to let go.
To whom can owners sell their businesses?
The next problem arises on the demand side: there appear to be too few entrepreneurs in Germany who could act as potential buyers. As a result, fierce competition for successors has broken out in many industries.
The following industries are most affected:
Hotel and restaurant industry
Skilled trades
Retail
Service industries
Less Risk for Entrepreneurs Through Business Succession
However, experts also advise that asking prices for a business sale should be carefully considered. According to this DIHK study, over 40% of business owners have unrealistic price expectations when they want to sell their companies. Once an acceptable price has been determined—based on various calculation methods—an interested successor can often be found.
For bold entrepreneurs, this situation offers significant opportunities. For example, new business founders can significantly reduce their risks by taking over an existing business. However, the purchase or sale of a business must be very well prepared on both sides.
Succession via DUB.de
The German Business Exchange brings together business sellers and successors.
Germany’s largest business exchange makes buying and selling companies convenient: purchase requests and sale listings can be posted online easily, anonymously, and securely. In addition to the business exchange, DUB.de also offers a franchise exchange where franchisors can showcase their opportunities and find franchisees for new and existing locations.
